Industry and Development Study Guide APHG

Site Factors

Physical features that relate to the cost of production and transport.

Situation Factors

Features of the surrounding area that are related to the cost of production and transport.

Basic Industry

The main focus of a region’s economy, such as Detroit = Cars, LA = Film.

Non-Basic Industry

Businesses that support the work of the basic industry.

Multiplier Effect

The interaction between basic and non-basic industries that grows the economy.

Fixed Costs

Costs that do not fluctuate, e.g., rent.

Variable Costs

Costs that fluctuate, e.g., energy bills or tips.

Transportation Systems

Methods of transporting goods, influencing production cost based on distance and weight.

Agglomeration

Clustering of similar businesses that provide assistance and efficient labor.

Deglomeration

When the market becomes too saturated with similar businesses.

Weber’s Least Cost Theory

The location of a factory is based on raw materials cost, labor cost, and transportation cost.

Weight Gaining

Finished goods weigh more than raw materials, thus are located closer to the market. (ex: cars)

Weight Reducing

Raw materials weigh more than finished goods, located closer to materials. (Potato chips)

Outsourcing

Transferring manufacturing jobs to poorer countries. Ex: Maquiladoras

Footloose Industries

Industries without a strong preference for location, often high-tech or textiles.

Global Industrial Zones

Regions identified as primary manufacturing areas globally.

Global Industrial Zones: North America

Ontario, CAN

NE, USA

E and W Rust Belt

NC, SC, GA

Seattle - Portland

N Mexico and Mexico City

Global Industrial Zones: Asia

Russia and Ukraine

W Euro

China Zones: Beijing, Shanghai, Hong Kong

Japan Zone: Kanto Plain

“Asian Tigers”: S. Korea, Taiwan, Singapore, Hong Kong

Gross Domestic Product (GDP)

A measure of a country's economic activity and health.

Life Expectancy

Average period a person may expect to live, an indicator of development.

Human Development Index (HDI)

A composite statistic of life expectancy, education, and per capita income.

Economic Sectors

Different areas of economic activity: Primary, Secondary, Tertiary, Quaternary, Quinary.

World Systems Theory

A model that describes the world economic system comprising core - USA, W. Europe, Japan(most developed), semi-periphery- China, India, Latin Amer, and periphery- Africa (Less developed).

Ladder of Development

Traditional Society - poorest (Niger, South Sudan, Laos)

Preconditions for takeoff - to early industrialization (Nigeria, Kenya, Bangladesh)

Takeoff - rapid growth (China, India, Vietnam, Brazil)

Drive to maturity- rapid tech growth (Russia, Poland, Saudi Arabia)

Mass Consumption - Most TQQ sectors (USA, Japan, Australia, S Korea)

OPEC

Organization of Petroleum Exporting Countries, controlling oil supply and pricing.

Pollution countries

China, USA, India, Russia

Globalization

Used in the late 1990s and early 2000s due to tech within global community

1)      Economic:  outsourcing and offshoring of production and services.  Tech makes easier, more efficient and faster  (eliminates the friction of distance)

2)      Political:  Supranationalism and increased multilateral organizations

3)      Cultural:  mass migration and immigration and internet connect more people to more places (McDonaldization)

Oil Countries

Main Producers - USA, Saudi, Arabia, Russia, Iran

Main Consumer - USA, China, EU

Natural Gas Countries

Main Producer - Russia, Canada, USA

Main consumer - EU, USA

Coal countries

Main P - China, India, USA

Main C - China, India, USA

Forestry and Timber

Main P - Canada, Russia, USA, Brazil, China

Main C - China, USA

Fishing as food source countries

Main P - China, Indonesia, India, Vietnam

Main C - China, Vietnam, Japan, USA

Costs of Globalization

Rise in pollution

Rise in reactionary nationalism

Loss of some jobs in richer nations

Rise in energy use

Rise in environmental degradation

Benefits of Globalization

Rise in wealth in developing states

Rise in life expectancy

Rise in literacy and education

Increased gender rights

Increased democracy